It has also had an impact at home, with spot prices of gas in Victoria and other states on the east coast softer than they have been since early this
year, although contract offers are still much higher, sources said.

Over the past few weeks traders have been increasingly assuming they can count on little if any spot LNG reaching Asia from north-east Australia.

Even now that Canberra has backed away from triggering the export controls, Tuesday's deal is seen having a similar effect as Queensland's exports
of gas will be essentially limited to long-term contracts.

Australia is the world's biggest LNG exporter and is set to be the biggest by 2020.

North Asian spot LNG prices rose to $US8.348 per million British thermal units this week, up from $US6.187 four weeks ago.

Under the "Heads of Agreement" signed in Canberra, the Queensland LNG exporters will offer enough gas to meet a forecast 54 petajoule shortfall on
the east coast in 2018, and a 48 PJ gap in 2019. Roughly as much again of potential additional demand would also be covered.

The deal, which firms up last week's initial accord, also obliges the LNG ventures run by Shell, Santos and Origin Energy to offer any gas produced beyond their LNG sales contracts first to the domestic
market on "competitive" terms before offering it overseas. No prices were mentioned, but the producers have volunteered to provide information
on contract offers to the competition watchdog.

Mr Turnbull said the commitments "are vitally important to ensure Australian jobs and to ensure Australians have affordable and reliable energy", including
electricity.

"That means we will not be required to place restrictions on exports," he declared.

"There have been some difficult and tense moments and we appreciate the challenge that you've given to us," Ms Yujnovich said.

"We hope that through the Heads of Agreement, indeed we can find a path forward to make sure that the domestic market is serviced and that indeed there
is enough available gas for the market, which we stand behind and are committed to deliver."

But Opposition Leader Bill Shorten urged Mr Turnbull to pull the trigger on LNG export controls, claiming the threat is not enough to ensure the prices
needed by Australian manufacturers to survive and flourish.

"Turnbull is afraid to use the legal powers he has got ... and in the meantime Australian businesses and the Australian households are the losers,"
Mr Shorten said.

Oil and gas industry spokesman Malcolm Roberts said the Queensland gas industry had effectively provided a reprieve to Victoria and NSW from the consequences
of their policy failures in restricting access to onshore gas.

Dr Roberts, head of the APPEA organisation, said Victoria's ban on onshore gas in the face of its forecast 116 petajoule supply gap in 2018 is "policy
madness" and said more supply was the only sustainable way to meet long-term demand and rein in prices.

Warwick King, the head of Origin's APLNG venture, said it is "absolutely vital" Australia adopted a "whole of market solution" to resolve new gas supply,
including reforms to improve the domestic gas market and the responsible development of resources near the demand centres of Sydney and Melbourne.

He said that "where operationally possible", APLNG had always tried to see if the domestic market could take gas before exporting it.

Santos, whose GLNG venture already limits exports to gas needed for long-term contracts, said it had always argued that any east coast shortfall required
a response across the industry rather than singling out its project.

"Let's not forget that without the LNG projects this gas would still be in the ground and not available to help address the current domestic supply
issue on the east coast," a spokeswoman said.

The rise in LNG spot prices weakens the argument of buyers in the eastern states that rivals in Asia are paying less for Australian gas than they are.

Contract prices for both Asian LNG and domestic gas are higher, however. One east coast gas buyer pointed to offered firm contracts at $11-$12 a gigajoule,
with only high-quality, larger buyers getting closer to $10.

Strong LNG demand in China and South Korea, and concerns about exports from Louisiana's Sabine Pass terminal after Hurricane Harvey are also driving
Asia's price gains.